Key Points
Stagwell's shift to AI-driven offerings is boosting its profits.
Management sees revenue rising as much as 12% in 2026.
- 10 stocks we like better than Stagwell ›
Shares of Stagwell (NASDAQ: STGW) popped on Tuesday after the artificial intelligence (AI)-powered marketing specialist issued an upbeat growth forecast.
By the close of trading, Stagwell's stock price was up more than 17%.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
AI-driven gains
Stagwell's net revenue grew 3% year over year to $651 million in the fourth quarter. Excluding advocacy-related sales, which fluctuate with the political cycle, the advertising technology company's net revenue rose 8% to $609 million.
Stagwell's adjusted earnings, in turn, jumped 20% to $0.30 per share.
"In 2025, Stagwell increased its strategic pivot toward AI applications and services, building a powerful foundation for 2026," CEO Mark Penn said. "With accelerating growth ex-advocacy, record net new business, expanding margins, and doubled free cash flow, our FY25 results prove our strategy is working."
A new partnership should fuel further growth
Stagwell also announced a deal with mobile app development platform AppLovin (NASDAQ: APP). The two companies will work together to help marketers create more effective mobile ad campaigns.
The agreement will give Stagwell's clients access to over a billion potential customers via AppLovin's mobile gaming network.
"AppLovin's platform offers powerful reach and performance capabilities for our clients looking to drive measurable outcomes in mobile environments," Penn said.
Stagwell expects its net revenue to grow by 8% to 12% in 2026, driven by its mobile and AI-powered offerings.
Should you buy stock in Stagwell right now?
Before you buy stock in Stagwell, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Stagwell wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $530,233!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,682!*
Now, it’s worth noting Stock Advisor’s total average return is 955% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 10, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
